Shore Capital initiates with a ‘buy’ recommendation and a 1,250p target price.
DiscoverIE Group PLC () has been tipped to increase in value by some 80% in the coming years as it benefits from the rising uptake of electrification in industrial applications.
Stockbroker Shore Capital has today begun its coverage of the London-listed designer and manufacturer of customised electronic components.
“We initiate coverage with a ‘buy’ recommendation and believe that the shares have the potential to reach 1,250p within four years if the company achieves its FY2025 targets,” analyst Tom Fraine said in a note.
“We believe that the company is well placed to benefit from the long-term trend of increased electrification in industrial applications. This has been driven by a rise in automation, which we believe may be accelerated by COVID-19, given the sharp fall in employment in the global manufacturing sector.”
Fraine added: “The group has been growing its exposure to attractive end markets with 68% of group sales in FY2020A driven by the renewable energy, transportation, industrial & connectivity and medical markets.
“The company has consistently achieved double-digit underlying EPS growth, strong cash generation and margin expansion, which we expect to improve further, and has strong ESG credentials.”